Incorporating insulation material with phase change materials (PCMs) could help enhance the insulation capability for further building energy savings by reducing the HVAC loadings. During the phase change process between the solid and liquid states, heat is being absorbed or released by PCMs depending on the surrounding temperature. This research explores the benefits of a polyurethane (PU)-PCM composite insulation material through infiltrating paraffin wax as PCM into PU open cell foam. The new PU-PCM composite provides extra shielding from the exterior hot temperatures for buildings. Through this study, it was demonstrated that PU-PCM composite insulation could potentially help building energy savings through reducing the loads on the HVAC systems based on the building energy modeling using EnergyPlus. The Zero Energy Lab (ZØE) at the University of North Texas was modeled and studied in the EnergyPlus. It is a detached building with all wall facades exposed to the ambient. It was determined that the new PU-PCM insulation material could provide 14% total energy saving per year and reduce the electricity use due to cooling only by around 30%.